Why Does Diversity Matter?

It seems as though every Fortune 100 company in the US is talking about diversity.  With so many companies saying that diversity initiatives are their priority, the question is, why are they falling short?  Diversity and inclusivity initiatives will only be successful if the majority of people experience a feeling of belonging at every level within the company.  

Is diversity and inclusivity initiatives a feel good movement?  No, it’s not because study after study have shown that diversity leads to more creative teams and it increases the company’s bottom line. McKinsey & Company, a management and consulting firm that has been around for 92 years, studied 366 public companies across many industries in the US, the UK, Canada and Latin America and the results show:

1. In the United States, there is a linear relationship between racial and ethnic diversity and better financial performance: for every 10 percent increase in racial and ethnic diversity on the senior-executive team, earnings before interest and taxes (EBIT) raise 0.8 percent.
2. Companies in the top quartile for racial and ethnic diversity are 35 percent more likely to have financial returns above their respective national industry medians.
3. Companies in the top quartile for gender diversity are 15 percent more likely to have financial returns above their respective national industry medians.
4. Racial and ethnic diversity have a stronger impact on financial performance in the United States than gender diversity, perhaps because earlier efforts to increase women’s representation in the top levels of business have already yielded positive results.

Diversity leads to more creativity which leads to better financial returns and there are many studies to prove this.  Studies have also shown that teams that are inclusive make better decisions.  This is why diversity matters.

We all have a responsibility to be leaders and make people feel comfortable.  This means that change doesn’t have to start from the top; change can happen at every level.  When you feel as if you belong somewhere, your work ethic improves because you feel like it’s your company as well. As an entry or mid-level manager you play a big part in communicating why creating a sense of belonging is needed.  Again, this is why diversity matters.

Here are some things that you can do as a manager to help:

Seek out Different Mindsets

Diversity isn’t just about race or gender, it’s also about different mindsets.  Unfortunately leaders tend to promote people who are qualified, but they are the individuals they feel the most comfortable with and most of the time like-minded. This can be a barrier when it comes to diversity.  Know this and challenge yourself to seekout different mindsets within your meetings, your teams, your friends, and hiring practices.

Be Deliberate

Be deliberate about bringing diversity into your workforce and organization.  As a mid level manager, seek out diverse talent.

Get Comfortable With Being Uncomfortable

We could all probably agree that achieving true diversity and managing diverse teams isn’t easy. But studies consistently show that diverse teams achieve better results than non-diverse teams so get comfortable with being uncomfortable.  It will help you, your team and your company grow.

As a manager, you can serve as a role model by showing support for diversity goals and encouraging your team to push through challenges as they relate to diversity. Pinterest found that when managers are made aware of why diversity matters, those managers took more initiative and got more involved to support the cause.

BH Nugget:

You should now have a better understanding of why diversity matters.  I challenge you to do your part and become a diversity and inclusion change agent and a champion of diversity within the organization that you are in. Have the difficult conversations, challenge yourself to change mindsets, be a diversity role model. Support the cause. Support Black Heights.

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